Building Economic Resilience to the Health Impacts of Climate Change 2025

–The built environment sector faces rising health risks due to climate change. These risks are exacerbated by urban heat islands (UHIs), infrastructure that’s not tailored to current or projected climate conditions, and poor ventilation, affecting both urban populations and workers. –The construction industry, employing approximately 8% of the global workforce,43 is particularly vulnerable. The health consequences of heat and extreme weather are leading to productivity losses, delivery delays and property devaluation. This report estimates that construction workers will face at least 30 million DALYs, resulting in at least $570 billion in lost output from select climate- health illnesses between 2025 and 2050. –Much of the world’s existing infrastructure (including buildings) was not originally designed for today’s climate extremes. This increases the risk of injury and mortality, threatening community safety. –At the same time, climate-resilient building and urban design present significant opportunities for the sector. Resilient buildings can command higher rents, reduce insurance costs and attract premium tenants. –Demand is growing for adaptation measures like green infrastructure and advanced retrofits, which can boost durability, cut operating costs and offer a competitive edge. As climate risks intensify, innovators in this space will be well- positioned to lead.Built environment key takeaways BOX 4 4.1 The built environment sector Today, over half of the world’s population – 4.2 billion people44 – live in urban areas. The built environment shapes the spaces where people live and work, playing a critical role in determining health outcomes. The sector spans urban planning, architecture, construction, operations and maintenance. Construction alone employs about 8% of the global workforce,45 building homes, commercial spaces and critical infrastructure. This is a global industry, with growth increasingly centred in developing regions. The sector faces significant challenges, with climate change adding additional pressures. Persistent labour shortages, particularly in the developing world, lead to heavy reliance on migrant labour. The sector is highly sensitive to macroeconomic conditions and input material prices (e.g. of steel, cement, lumber). Strengthening the resilience of the built environment can protect human health and well-being through sustainable design, adaptive infrastructure, responsive planning and climate-responsive policies. 8% of the global workforce is made up of the construction industry. 22 Building Economic Resilience to the Health Impacts of Climate Change